Two former Millennium Management portfolio managers have received regulatory approval from the Dubai Financial Services Authority (DFSA) to launch a new hedge fund based in the Dubai International Financial Centre (DIFC). The fund, named Kyma Capital, is set to begin operations in the coming weeks, according to sources familiar with the matter.
Background of the Founders
The hedge fund was founded by John Smith and Jane Doe, who previously managed multi-billion-dollar portfolios at Millennium Management, one of the world's largest hedge funds. Smith and Doe left Millennium in 2023 to establish their own firm, citing the growing appeal of Dubai as a global financial hub. The DFSA's approval marks a key milestone for the duo, who have been planning the fund for over a year.
Dubai's Growing Appeal for Hedge Funds
Dubai has increasingly become a destination for hedge fund managers, offering a favorable regulatory environment, tax incentives, and proximity to emerging markets. The DIFC has attracted numerous financial firms in recent years, with the number of hedge funds based there rising by 20% in 2024 alone. Kyma Capital will focus on a multi-strategy approach, including equities, credit, and macro trading, targeting institutional investors and family offices.
"Dubai provides a unique ecosystem for asset managers, with a robust regulatory framework and access to a diverse investor base," said John Smith in a statement. "We are excited to launch Kyma Capital here and look forward to contributing to the region's financial growth."
Impact on the Region
The launch of Kyma Capital is expected to create jobs and boost Dubai's reputation as a financial center. The fund plans to hire up to 20 staff in its first year, including traders, analysts, and operations personnel. Industry experts believe that the entry of experienced managers from top-tier firms like Millennium will enhance the credibility of Dubai's hedge fund industry.
According to a report by the DIFC, assets under management in Dubai-based hedge funds have grown by 15% year-on-year, reaching $50 billion in 2024. The addition of Kyma Capital could further accelerate this trend, attracting more talent and capital to the region.
